Household confidence continued its downward spiral in the second quarter of 2023, hitting its lowest level since the survey’s inception in 2008. The household confidence index (ICM) reading plummeted to 45.4 points, down from 50.1 points in Q2-2022, per the report issued by Statistics and Forecasts Office (HCP).
In Q2-2023, 87.3% of households reported a decrease in their quality of living over the past 12 months, while 10.0% reported maintaining the same level and 2.7% of those surveyed reporting an actual increase.
The balance of opinion on the historical progression of quality of living remained negative, reaching its nadir of -84.6 points.
With a net negative opinion of -43.7 points, 53.4% of households predict a decline in quality of life, 36.9% anticipate the status quo, and 9.7% expect an improvement in the next 12 months. Also, 85.3% predict unemployment to rise, continuing a downward trend that began in Q2 of this year.
In accordance with data from HCP, 78.8% of families say now is not the time to invest in durable goods. Over 53% say that their income covers their basic needs, while 44% are in debt or rely on savings. Disturbingly, an infinitesimally microscopic portion of those surveyed, only 2.6%, are able to save any their earnings.
The financial position has deteriorated according to over six in ten polled.
In Q2-2023, 18.5% of families expect their financial situation to improve, while 56.9% anticipate stability, and 24.6% fear a deterioration of their financial scenario. A little over ten percent of households plan to save, which would certainly be an improvement over the fewer-than-three percent who currently do.
Food prices climbed 98.1%, with 72.5% predicting a further increase, 22.7% predicting stability, and 4.8% eyeing a drop.